OPEC + sources: If demand fails to recover, production cuts may be extended

On May 2, OPEC + has not yet started formal talks on extending the voluntary production cut of 2.20 million barrels per day beyond June, but three sources from OPEC + voluntary production reduction countries said they may extend the production cut plan if demand fails to pick up. The voluntary production cut agreement of some OPEC + members 2.20 million barrels per day expires at the end of June. Conflict in the Middle East has provided support for oil prices this year, but concerns about economic growth and high interest rates have also taken a toll on oil prices. One source said the production cut could be extended until the end of the year, while another said OPEC + would need to make any changes in the event of an unexpected jump in demand. Two other OPEC + sources said that formal talks had not yet taken place, with one saying that OPEC + had not yet made any decisions on extending production cuts.